Big Tech's impending earnings reports come at a challenging time marked by trade war fears and a significant decline in market value. With analysts expecting strong profit growth, the potential for missed earnings is heightened amid fears of recession. Wall Street remains unconvinced about larger estimates, prompting cautious trading behavior. As companies like Microsoft, Apple, Meta, and Amazon prepare to report, the market's response will likely hinge on their ability to navigate both tariff impacts and investor anxieties surrounding economic growth.
Even with all the uncertainty, Wall Street isn't giving the companies' estimates much wiggle room. Analysts expect the so-called Magnificent Seven to deliver an average profit growth of 15% in 2025.
Traders are unlikely to forgive earnings shortfalls in an already fearful market climate, despite steep declines in the companies' share prices and improved valuations.
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